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Hudson’s Bay Co.’s tidy little turnaround story has become complicated.Fred Lum/The Globe and Mail

Miners, financials and a well-received earnings report from Canada's oldest retailer helped push the Toronto stock market higher late morning Friday.

The S&P/TSX composite index gained 13.07 points to 15,547.39.

Hudson's Bay Co. cut its second-quarter loss to $36-million, or a loss of 23 cents per diluted share, from continuing operations. That compares with a loss of $66-million, or a loss of 55 cents per diluted share, a year ago. Retail sales were $1.76-billion, an increase of $821-million, or 86.6 per cent, from $948-million for the previous year, primarily due to the inclusion of U.S. luxury retailer Saks Inc. HBC shares erased early declines and gained 23 cents to $17.90.

However, markets were in a generally risk averse mood as the European Union and the U.S. levied another round of sanctions on Russia for its involvement in Ukraine. Investors also awaited next week's U.S. Federal Reserve meeting on interest rates and a referendum that will decide whether Scotland leaves the United Kingdom.

The Canadian dollar was at a fresh five-month low, down 0.18 of a cent to 90.34 cents (U.S.) amid economic growth worries and the timing of the next U.S. rate increase.

The Dow Jones industrials dropped 34.21 points to 17,014.79 amid data showing that August retail sales rose 0.6 per cent from July, led by a strong showing in the auto sector.

The Nasdaq shed 12.82 points to 4,578.98 and the S&P 500 index slipped 6.62 points to 1,990.83.

Also, the University of Michigan's widely-watched consumer index strengthened during September, rising to 84.6 from 82.5 in August.

Overseas, the European Union announced sanctions against Russia that will toughen financial penalties on the country's banks, arms manufacturers and its biggest oil company, Rosneft. The United States also announced that its sanctions would be extended. Analysts point out that there will be a price for imposing sanctions, which would weigh on the European economy that's still struggling to avoid slipping back into recession.

"The new sanctions . . . are likely to see a retaliation, with media reports suggesting they could take the form of a Russian ban on European car imports," said Mark Chandler, head of Canadian FIC Strategy at RBC Dominion Securities.

"As it relates to the growth narrative in Europe and, specifically for Germany, such a development may begin to hurt broader economic repair," Chandler said.

At the same time, anticipation is building that the Federal Reserve is closer to winding down its economic stimulus and raising interest rates. Markets generally expect the central bank to move on interest rates sometime around the middle of next year, but analysts will be scanning the Fed announcement for indications that it could move even earlier in 2015.

Also, there has been heightened concern about the Scottish referendum slated for Sept. 18, particularly after polls released showed the results too close to call.

The base metals sector was the leading advancer, up 0.8 per cent while December copper was unchanged at $3.09 (U.S.) a pound. But the sector has fallen 4.5 per cent this past month because of global growth concerns.

Financials were also supportive, up 0.45 per cent.

The gold sector led decliners, down 1.1 per cent while December bullion faded $9.10 to $1,229.90 an ounce.

The TSX energy sector was down 0.1 per cent while oil prices declined 27 cents to $92.56 a barrel after hitting a 16-month low during Thursday's session. Prices have been buffeted by a combination of lower demand and higher U.S. production.

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